Economics A Level: What Assumptions does the Demand and Supply model Make? What does this lead to?

Question

What Assumptions does the Demand and Supply model Make? What does this lead to?

go kys · Accepted Answer

-Supply and Demand are Independent of Each other
-All Markets are Perfectly Competitive 
-Ceteris Paribus. 
- This leads to the Model having little Real World Usage but helps understand how Supply and Demand Behave in a way that’s Easy, Simple and Understandable

Economics A Level

What Assumptions does the Demand and Supply model Make? What does this lead to?

-Supply and Demand are Independent of Each other -All Markets are Perfectly Competitive -Ceteris Paribus. - This leads to the Model having little Real World Usage but helps understand how Supply and Demand Behave in a way that’s Easy, Simple and Understandable

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